EU Session Bullet Report – USD weak ahead of Retail Sales

A selloff in stock markets and anything that carries great risk, boosted EUR and other majors versus the USD. AS already mentioned in previous reports, the rate increase now is widely expected and already priced in. This means that risk is on the upside with any data that could prove suspicious as a catalyst that FED could possibly not rise when the time comes. In these situations high intraday volatility is possible, while the pairs still will remain in large ranges.

Crude oil dropped to its lowest in over two months and for a third straight session to 41.35 while gold posted a 6 year low at $1174. Today’s news will feature Germany’s GDP as well as US Retail Sales, PPI and consumer sentiment.

Trading quote of the day:

Time is your friend; impulse is your enemy.

Jack Bogle

Green lines are resistance, Red lines are support.

EUR/USD
Pivot: 1.0745
Likely scenario: Long positions above 1.0745 with targets @ 1.083 & 1.086 in extension.
Alternative scenario: Below 1.0745 look for further downside with 1.0705 & 1.067 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

GBP/USD
Pivot: 1.517
Likely scenario: Long positions above 1.517 with targets @ 1.524 & 1.5275 in extension.
Alternative scenario: Below 1.517 look for further downside with 1.514 & 1.5095 as targets.
Comment: The RSI lacks downward momentum.

AUD/USD
Pivot: 0.708
Likely scenario: Long positions above 0.708 with targets @ 0.715 & 0.717 in extension.
Alternative scenario: Below 0.708 look for further downside with 0.704 & 0.7015 as targets.
Comment: The RSI is mixed to bullish.

USD/JPY
Pivot: 123.05
Likely scenario: Short positions below 123.05 with targets @ 122 & 121.6 in extension.
Alternative scenario: Above 123.05 look for further upside with 123.4 & 123.6 as targets.
Comment: As long as 123.05 is resistance, look for choppy price action with a bearish bias.

USD/CAD
Pivot: 1.3255
Likely scenario: Long positions above 1.3255 with targets @ 1.334 & 1.338 in extension.
Alternative scenario: Below 1.3255 look for further downside with 1.3225 & 1.318 as targets.
Comment: The RSI is mixed to bullish.

USD/CHF
Pivot: 1.0055
Likely scenario: Short positions below 1.0055 with targets @ 0.998 & 0.9945 in extension.
Alternative scenario: Above 1.0055 look for further upside with 1.009 & 1.0125 as targets.
Comment: The RSI lacks upward momentum.

GOLD
Pivot: 1090
Likely scenario: Short positions below 1090 with targets @ 1075 & 1072 in extension.
Alternative scenario: Above 1090 look for further upside with 1095 & 1103 as targets.
Comment: As long as 1090 is resistance, look for choppy price action with a bearish bias.

OIL
Pivot: 43.3
Likely scenario: Short positions below 43.3 with targets @ 40.95 & 40.08 in extension.
Alternative scenario: Above 43.3 look for further upside with 44.1 & 44.7 as targets.
Comment: As long as the resistance at 43.3 is not surpassed, the risk of the break below 40.95 remains high. The contract is currently trading in a bearish channel.

DAX
Pivot: 10880
Likely scenario: Short positions below 10880 with targets @ 10680 & 10600 in extension.
Alternative scenario: Above 10880 look for further upside with 11000 & 11060 as targets.
Comment: As long as 10880 is resistance, look for choppy price action with a bearish bias.

TIME IS IN GMT(+3)

Report prepared by the easy-forex VIP desk at 06:20 GMT.

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